CPL pre-tax profit rises to €5.3m

Dublin-listed recruitment firm CPL Resources said its pretax profit for the year to the end of June rose to €5.3 million, despite lower sales and net fee income during the period.

The company said it had experienced the most severe labour market conditions and operating environment in its 20-year history, but it was optimistic about the longer term outlook.

Sales were €189.9 million for the year, compared to €212.4 million, and net fee income was down to €28.2 million from €35 million a year earlier.

However, 2009 pre-tax profit of €1.7 million included impairment charges of €8.1 million.

Chairman John Hennessy said the year was "very challenging" for many Irish businesses, but said although it was too early to conclude that a sustained economic recovery has begun, there was gradual but noticeable improvements in CPL's markets.

"The downturn in the global economy, and particularly in Ireland, has been severe, and full recovery from it will take considerable time," Mr Hennessy said.

"Despite the uncertainty we still face in the economic landscape, there are a number of positive factors that will drive growth momentum over the coming years. These include deregulation, skills shortages and increased demand for flexible employment.”

CPL chief executive Anne Heraty said employers who had made severe cutbacks in staff were now finding that they need to hire again, particularly in specialist areas.

"There are strong long-term demand drivers for our business such as an aging population, the declining tenure of employees, the need for flexibility, increased globalisation and the pressures on customers to minimise costs," she said. "We believe that as a result of the actions we have taken this year, CPL is well positioned to take advantage of this market opportunity."